Goa’s Excise Department may have reported a 45% increase in revenue over the past four years, but a significant slowdown in growth during the 2023–24 fiscal year and Rs 4.1 crore in outstand ing dues from licence holders have raised concerns among ana lysts and officials. Official figures show excise revenue rising from Rs 650 crore in 2021–22 to Rs 947.9 crore in 2024–25, marking a significant boost to the State’s coffers. The biggest jump came in 2022 23, when collections surged to Rs 865 crore — up by more than Rs 215 crore from the previous year. However, the momentum slowed in 2023–24, with revenue inching up by just 4% to Rs 900.2 crore, signalling possible saturation in alcohol consumption and chang ing market dynamics. The 2023–24 budget intro duced targeted policy tweaks, including a small hike in duties on Indian-Made Foreign Liquor (IMFL) and a reduction in duties on premium liquor. These meas ures were aimed at maintaining a balance between revenue genera tion and market stability. Despite the overall upward trend, the slowdown in 2023–24 has raised concerns. The Rs 35.1 crore increase in revenue contrasts with the pre vious year’s double-digit growth, raising questions about consump tion patterns and the broader economic climate. Adding to the department’s challenges is the issue of unpaid dues. According to official data, Rs 4.1 crore remains outstanding from 242 excise licence holders — including retailers, bars, and manufacturers — with some dues pending since 2018. Most default ers are concentrated in the Tiswa di and Salcete talukas. A senior excise official said that the strict recovery action has been initiated. “Licences of those who have not cleared their dues have been proposed for cancel lation, while most have already been cancelled. Those applying for renewals will also be charged 2% monthly interest on outstand ing amounts.” Dattaprasad Naik, President of the All Goa Liquor Traders’ Association, said the growth in excise revenue was commenda ble, but urged the government to strengthen checks at the manu facturing and import stages to sustain the momentum.
“Currently the state earns approximately Rs 450 crore from excise duty on IMFL (Indian Made Foreign Liquor) and around Rs 300 crore from excise duty on beer, wine, and other excisable articles. Additionally, Rs 30 crore is collected from application fees for exports and imports by manufacturers and wholesalers, and another Rs 30 crore from licence fees across manufacturing units, retailers, and wholesalers, remaining part is earned from label recording, fines, etc,” he said. “It is important to note that while certain illegal out lets may operate outside the regulatory framework, their direct impact on government revenue is relatively minor. The greater concern lies in the loss faced by legitimate licence holders who operate within the system and com ply with all excise obligations. If the government aims to further enhance revenue collections, the focus should be on strengthening enforcement at manufacturing units and border check-posts. This is crucial to prevent ille gal manufacturing and diversion, which not only affects Goa’s revenue but also that of neighbouring States,” he said. Naik said, “A key factor to consider is that Extra Neutral Alcohol (ENA) — the primary raw material for IMFL — is not produced within Goa. Therefore, rigorous monitoring of ENA movement and documentation at check-posts can help ensure transparency and compliance. Enhanced vig ilance at this stage will not only safeguard excise duty but also improve Value Added Tax (VAT) collections, since VAT on liquor is directly proportional to the volume of alcohol manufactured and sold.” He opined that while Goa’s excise revenue performance has been commendable, the next phase of growth must fo cus on tightening controls at the manufacturing and import stages, ensuring that every litre of spirit entering or being used within the State is duly accounted for. Such measures will sustain the momentum of growth and protect the inter ests of compliant businesses and the State exchequer alike.
